This is the Lightning Round, a weekly segment of the show where we answer questions from texts, meetings with people wanting to reach their financial dreams and listeners who have called or emailed into the show.
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Will ask about financial planner commissions and if they are really a bad thing in financial advising?
Listen at 1:14
Will you are right. They are not always a bad thing and I talk about the problems I see with commissions. Let's be sure we set the record strait.
There is nothing wrong with commissions, but my trouble is when a client is coming for a plan and they are being sold a product.
I don't know if you see the conflict that comes when customers are looking for comprehensive financial plans, and are being sold a single product despite their comprehensive needs. I can't agree with that.
Please Will, continue to be a great financial advisor. I hope you and your clients a great amount of success, but please strive for transparency. I honestly believe, and have experienced this in our practice, the more open you are the more your clients' will trust you.
It is crucial that your customers understand how you are being paid and how it affects what you recommend.
See how More Than Money recently restructured our payment structure to fix this problem. It made sense for us, because it makes sense in helping the most people realize their dreams.